before they could hit their targets. >> i hope that hamas and the other terror organizations in gaza got the message. if not, israel is prepared to take whatever action is necessary to defend our people. >> both israelis and palestinians report innocent women and children have been killed on both sides. egypt's prime minister arrived in the gaza strip this morning to meet with palestinian officials about the attacks. >>> president obama is in budget negotiations with top members of congress. democrats and republicans say they will work together in order to get a deal done. if they don't, the u.s. economy could fall off the fiscal cliff. tara mergener has more. >>reporter: president barack obama sat down with congressional leaders as democrats as republicans look for a way to avoid the fiscal cliff. if the two sides don't reach a budget deal before the end of the year, automatic spending cuts and tax hikes will kick in and possibly throw the economy back into a recession. >> so our challenge is to make sure that we are able to cooperate together, work together, find some common ground.